KE Holdings Inc - ADR BEKE shares are trading lower by 3.4% to $15.00 Tuesday afternoon on continued weakness. Shares of several Chinese stocks are trading lower amid concerns over the country's property sector following reports suggesting China Evergrande said it's unable to issue new debt due to an ongoing investigation into its Hengda Real Estate subsidiary.
Why It Matters
KE Holdings operates in the online real estate services sector, providing a platform for property listings, transactions and related services. A slowdown or instability in the property market, driven by concerns about Evergrande, can lead to reduced transaction volumes.
This would affect KE Holdings' revenue, as its business relies on commissions and fees generated from property transactions.
Economic instability and concerns about the property market can, in general, erode consumer confidence in real estate investments. This can result in fewer people seeking real estate services and using online platforms like those provided by KE Holdings.
What's Going On?
Evergrande, the beleaguered Chinese property developer, said Friday that it was cancelling a creditor meeting scheduled early this week. It said that “sales had not been as expected”.
The announcement is the latest in a series of scandals to hit the Chinese financial behemoth. Mid-September, the domestic regulator approved a 50% sale of its insurance business China Evergrande Life into a special purpose vehicle owned by the Chinese state to free up cash.
Then last week, staff in the company’s wealth management division were detained by Shenzhen police...Read More
According to data from Benzinga Pro, BEKE has a 52-week high of $21.08 and a 52-week low of $9.09.
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